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The importance of thoughtful beneficiary designations for investment portfolios

Most people perceive their investment portfolios as deeply personal and specific to their taste. You are the person who agrees to make the purchases, and you reap the benefits from those investments over time.

However, your investment portfolio can also provide benefits for your loved ones, especially if your investments are included in your estate plan. You can list your family or friends as beneficiaries on your investment portfolio and save them time, money and effort in the long run.

Beneficiaries receive more money — more quickly

If you want to ensure that your relatives and friends receive money quickly from your estate, naming them as beneficiaries is a fast and effective option in most cases. Once you name your beneficiaries, the assets can go straight to them outside of probate.

After all, probating an estate can take months (and possibly years), and thoughtfully naming beneficiaries of investments accounts can help families save money on probate, as well as receive assets as quickly as possible.

Coordinating your beneficiary designations with the rest of your estate plan

Also, naming beneficiaries to your investment accounts can allow them to maintain control of those assets long after you pass. It’s a huge advantage for most family members as they have easy access to the accounts and any assets within them. Remember, though, beneficiary designations for investment accounts can also override your will, so it’s important to coordinate your beneficiary designations with the rest of your estate plan.

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